SECTION 1. PURPOSE

This revenue procedure prescribes the loss payment patterns and discount factors for the 2013 accident year. These factors
will be used to compute discounted unpaid losses under § 846 of the Internal Revenue Code. See Rev. Proc. 2012–44, 2012–49 I.R.B. 645, for background concerning the loss payment patterns and application of the discount
factors.

SECTION 2. SCOPE

This revenue procedure applies to any taxpayer that is required to discount unpaid losses under § 846 for a line of business
using the discount factors published by the Secretary.

SECTION 3. TABLES OF DISCOUNT FACTORS

.01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2013.
All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2013,
which is 2.16 percent, and by assuming all loss payments occur in the middle of the calendar year.

.02 If the groupings of individual lines of business on the annual statement change, taxpayers must discount unpaid losses
on the resulting line of business in accordance with the discounting patterns that would have applied to those unpaid losses
based on their classification on the 2010 annual statement. See Rev. Proc. 2012–44, 2012–49 I.R.B. 645, section 2, for additional background on discounting under § 846 and the use of the
Secretary’s tables.

.03 Section V of Notice 88–100, 1988–2 C.B. 439, sets forth a composite method for computing discounted unpaid losses for
accident years that are not separately reported on the annual statement. The tables separately provide discount factors for
taxpayers who elect to use the composite method of section V of Notice 88–100. See Rev. Proc. 2002–74, 2002–2 C.B. 980.

.04 Tables.

Accident and Health (Other Than Disability Income or Credit Disability Insurance)

Taxpayers that do not use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred
in this line of business in the 2013 accident year and that are outstanding at the end of the 2013 and later taxable years.

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount all unpaid losses in this
line of business that are outstanding at the end of the 2013 taxable year.

Auto Physical Damage

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

90.2657

90.2657

9.7343

9.6230

98.8565

2014

99.7478

9.4822

0.2522

0.2469

97.8913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

0.1261

0.1261

0.1247

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

Commercial Auto/Truck Liability/Medical

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

25.7034

25.7034

74.2966

70.9382

95.4798

2014

48.2664

22.5629

51.7336

49.6652

96.0017

2015

67.8834

19.6171

32.1166

30.9101

96.2436

2016

82.0630

14.1795

17.9370

17.2459

96.1471

2017

90.4161

8.3532

9.5839

9.1756

95.7395

2018

94.6293

4.2132

5.3707

5.1153

95.2448

2019

97.0203

2.3910

2.9797

2.8092

94.2754

2020

98.2283

1.2081

1.7717

1.6488

93.0643

2021

98.6653

0.4370

1.3347

1.2428

93.1103

2022

98.8635

0.1982

1.1365

1.0692

94.0830

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

0.1982

0.9382

0.8920

95.0674

2024

0.1982

0.7400

0.7108

96.0618

2025

0.1982

0.5417

0.5258

97.0618

2026

0.1982

0.3435

0.3368

98.0526

2027 and later years

0.1982

0.1453

0.1437

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 95.2133 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Composite

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

39.5281

39.5281

60.4719

56.8797

94.0596

2014

62.0267

22.4986

37.9733

35.3680

93.1390

2015

73.7017

11.6750

26.2983

24.3315

92.5211

2016

80.0846

6.3830

19.9154

18.4055

92.4188

2017

85.7818

5.6971

14.2182

13.0448

91.7468

2018

90.2809

4.4992

9.7191

8.7791

90.3280

2019

91.9588

1.6778

8.0412

7.2728

90.4439

2020

92.9722

1.0134

7.0278

6.4056

91.1463

2021

94.0835

1.1113

5.9165

5.4207

91.6201

2022

94.7469

0.6634

5.2531

4.8673

92.6551

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

0.6634

4.5898

4.3020

93.7289

2024

0.6634

3.9264

3.7244

94.8545

2025

0.6634

3.2631

3.1344

96.0555

2026

0.6634

2.5997

2.5316

97.3791

2027 and later years

0.6634

1.9364

1.9158

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 94.0296 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Fidelity/Surety

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

22.8449

22.8449

77.1551

74.9598

97.1547

2014

55.8585

33.0137

44.1415

43.2107

97.8913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

22.0707

22.0707

21.8362

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

Financial Guaranty/Mortgage Guaranty

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

6.2515

6.2515

93.7485

90.9767

97.0433

2014

43.0154

36.7639

56.9846

55.7829

97.8913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

28.4923

28.4923

28.1895

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

International (Composite)

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

39.5281

39.5281

60.4719

56.8797

94.0596

2014

62.0267

22.4986

37.9733

35.3680

93.1390

2015

73.7017

11.6750

26.2983

24.3315

92.5211

2016

80.0846

6.3830

19.9154

18.4055

92.4188

2017

85.7818

5.6971

14.2182

13.0448

91.7468

2018

90.2809

4.4992

9.7191

8.7791

90.3280

2019

91.9588

1.6778

8.0412

7.2728

90.4439

2020

92.9722

1.0134

7.0278

6.4056

91.1463

2021

94.0835

1.1113

5.9165

5.4207

91.6201

2022

94.7469

0.6634

5.2531

4.8673

92.6551

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

0.6634

4.5898

4.3020

93.7289

2024

0.6634

3.9264

3.7244

94.8545

2025

0.6634

3.2631

3.1344

96.0555

2026

0.6634

2.5997

2.5316

97.3791

2027 and later years

0.6634

1.9364

1.9158

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 94.0296 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Medical Professional Liability — Claims-Made

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

6.3462

6.3462

93.6538

87.5287

93.4599

2014

23.0958

16.7496

76.9042

72.4898

94.2599

2015

41.6827

18.5868

58.3173

55.2691

94.7729

2016

56.5267

14.8440

43.4733

41.4594

95.3674

2017

71.2882

14.7615

28.7118

27.4348

95.5524

2018

82.3023

11.0141

17.6977

16.8950

95.4643

2019

86.5143

4.2120

13.4857

13.0027

96.4182

2020

91.1422

4.6279

8.8578

8.6059

97.1564

2021

94.8664

3.7242

5.1336

5.0276

97.9351

2022

97.5408

2.6745

2.4592

2.4330

98.9372

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023 and later years

2.4592

–

–

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Medical Professional Liability — Occurrence

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

1.2044

1.2044

98.7956

89.1257

90.2122

2014

4.3376

3.1332

95.6624

87.8839

91.8688

2015

11.8161

7.4785

88.1839

82.2234

93.2408

2016

24.7088

12.8928

75.2912

70.9681

94.2583

2017

42.3863

17.6774

57.6137

54.6337

94.8276

2018

57.1600

14.7738

42.8400

40.8813

95.4281

2019

68.9797

11.8196

31.0203

29.8178

96.1234

2020

82.4247

13.4450

17.5753

16.8724

96.0006

2021

86.7084

4.2837

13.2916

12.9071

97.1073

2022

91.6701

4.9617

8.3299

8.1709

98.0913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023 and later years

4.9617

3.3683

3.3325

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 95.3404 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Miscellaneous Casualty

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

69.0731

69.0731

30.9269

30.1469

97.4781

2014

85.5169

16.4438

14.4831

14.1777

97.8913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

7.2415

7.2415

7.1646

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

0.2317

1.1957

1.1325

94.7155

2024

0.2317

0.9640

0.9228

95.7250

2025

0.2317

0.7324

0.7086

96.7547

2026

0.2317

0.5007

0.4898

97.8131

2027 and later years

0.2317

0.2691

0.2662

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 94.5541 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Other (Including Credit)

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

54.6589

54.6589

45.3411

44.3679

97.8536

2014

84.2314

29.5725

15.7686

15.4360

97.8913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

7.8843

7.8843

7.8005

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

Other Liability — Claims-Made

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

7.4270

7.4270

92.5730

86.1238

93.0334

2014

25.2808

17.8538

74.7192

69.9385

93.6018

2015

44.2108

18.9301

55.7892

52.3158

93.7741

2016

56.4956

12.2848

43.5044

41.0291

94.3102

2017

69.2838

12.7883

30.7162

28.9897

94.3793

2018

77.6662

8.3823

22.3338

21.1435

94.6702

2019

83.1572

5.4910

16.8428

16.0502

95.2940

2020

88.1777

5.0205

11.8223

11.3225

95.7717

2021

93.1315

4.9539

6.8685

6.5599

95.5080

2022

92.9490

-0.1826

7.0510

6.8862

97.6617

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

3.2639

3.7871

3.7359

98.6482

2024 and later years

3.2639

0.5232

0.5176

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.6406 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Other Liability — Occurrence

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

10.0721

10.0721

89.9279

82.0100

91.1953

2014

24.3995

14.3274

75.6005

69.3001

91.6662

2015

37.3366

12.9372

62.6634

57.7208

92.1126

2016

52.4142

15.0776

47.5858

43.7280

91.8931

2017

64.3437

11.9295

35.6563

32.6149

91.4704

2018

73.7950

9.4512

26.2050

23.7667

90.6950

2019

79.7756

5.9807

20.2244

18.2351

90.1640

2020

84.0963

4.3206

15.9037

14.2619

89.6766

2021

85.6878

1.5915

14.3122

12.9614

90.5616

2022

86.9224

1.2346

13.0776

11.9935

91.7100

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

1.2346

11.8431

11.0047

92.9213

2024

1.2346

10.6085

9.9946

94.2131

2025

1.2346

9.3740

8.9627

95.6125

2026

1.2346

8.1394

7.9085

97.1626

2027 and later years

1.2346

6.9048

6.8314

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 92.9062 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Private Passenger Auto Liability/Medical

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

42.9881

42.9881

57.0119

55.1883

96.8013

2014

71.9931

29.0051

28.0069

27.0637

96.6325

2015

84.8250

12.8318

15.1750

14.6786

96.7288

2016

92.3500

7.5251

7.6500

7.3898

96.5989

2017

96.2665

3.9165

3.7335

3.5908

96.1796

2018

97.9880

1.7214

2.0120

1.9284

95.8467

2019

98.7958

0.8078

1.2042

1.1536

95.7990

2020

99.2445

0.4487

0.7555

0.7250

95.9639

2021

99.4543

0.2097

0.5457

0.5287

96.8694

2022

99.6370

0.1827

0.3630

0.3554

97.8984

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023 and later years

0.1827

0.1803

0.1783

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Products Liability — Claims-Made

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

4.5270

4.5270

95.4730

86.4950

90.5963

2014

16.0134

11.4865

83.9866

76.7534

91.3877

2015

45.1313

29.1179

54.8687

48.9807

89.2688

2016

39.2459

-5.8854

60.7541

55.9873

92.1539

2017

44.8357

5.5898

55.1643

51.5467

93.4422

2018

72.1615

27.3258

27.8385

25.0408

89.9502

2019

80.4448

8.2834

19.5552

17.2094

88.0042

2020

73.2957

-7.1491

26.7043

24.8070

92.8952

2021

87.4824

14.1866

12.5176

11.0038

87.9062

2022

87.7500

0.2677

12.2500

10.9709

89.5588

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

0.2677

11.9823

10.9374

91.2792

2024

0.2677

11.7147

10.9031

93.0721

2025

0.2677

11.4470

10.8680

94.9424

2026

0.2677

11.1793

10.8323

96.8954

2027 and later years

0.2677

10.9117

10.7957

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 93.5799 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Products Liability – Occurrence

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

7.1936

7.1936

92.8064

83.6839

90.1704

2014

16.9555

9.7619

83.0445

75.6247

91.0653

2015

28.3624

11.4069

71.6376

65.7288

91.7518

2016

39.7945

11.4321

60.2055

55.5936

92.3397

2017

54.3906

14.5961

45.6094

42.0415

92.1773

2018

60.9060

6.5154

39.0940

36.3642

93.0174

2019

67.7760

6.8700

32.2240

30.2059

93.7373

2020

75.7119

7.9359

24.2881

22.8372

94.0263

2021

79.5966

3.8847

20.4034

19.4040

95.1021

2022

83.9430

4.3464

16.0570

15.4301

96.0957

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

4.3464

11.7107

11.3703

97.0940

2024

4.3464

7.3643

7.2229

98.0799

2025 and later years

4.3464

3.0179

2.9859

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 97.2932 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Reinsurance — Nonproportional Assumed Property

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

20.1003

20.1003

79.8997

76.5081

95.7551

2014

59.2833

39.1830

40.7167

38.5567

94.6950

2015

73.0867

13.8034

26.9133

25.4378

94.5177

2016

80.3675

7.2808

19.6325

18.6282

94.8848

2017

87.7278

7.3603

12.2722

11.5912

94.4514

2018

94.4454

6.7175

5.5546

5.0519

90.9495

2019

96.5143

2.0689

3.4857

3.0699

88.0707

2020

97.9468

1.4326

2.0532

1.6883

82.2272

2021

97.4560

-0.4909

2.5440

2.2209

87.2972

2022

97.0652

-0.3908

2.9348

2.6638

90.7662

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

0.1836

2.7512

2.5358

92.1696

2024

0.1836

2.5675

2.4049

93.6659

2025

0.1836

2.3839

2.2713

95.2743

2026

0.1836

2.2003

2.1347

97.0199

2027 and later years

0.1836

2.0166

1.9952

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 91.9206 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Reinsurance — Nonproportional Assumed Liability

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

3.4987

3.4987

96.5013

87.1418

90.3012

2014

23.2170

19.7183

76.7830

69.0940

89.9860

2015

43.7483

20.5313

56.2517

49.8346

88.5920

2016

38.9131

-4.8352

61.0869

55.7981

91.3422

2017

47.9298

9.0167

52.0702

47.8898

91.9715

2018

80.0315

32.1017

19.9685

16.4777

82.5182

2019

76.5053

-3.5292

23.4947

20.3977

86.8180

2020

78.1701

1.6649

21.8299

19.1555

87.7491

2021

80.0717

1.9015

19.9283

17.6473

88.5539

2022

79.8791

-0.1926

20.1209

18.2231

90.5681

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

1.1246

18.9963

17.4801

92.0183

2024

1.1246

17.8717

16.7210

93.5611

2025

1.1246

16.7471

15.9455

95.2132

2026

1.1246

15.6225

15.1532

96.9959

2027 and later years

1.1246

14.4979

14.3438

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 91.9297 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Reinsurance — Nonproportional Assumed Financial Lines

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

1.5423

1.5423

98.4577

91.0796

92.5063

2014

20.9273

19.3850

79.0727

73.4537

92.8939

2015

30.4705

9.5433

69.5295

65.3945

94.0530

2016

46.3043

15.8337

53.6957

50.8032

94.6132

2017

51.8464

5.5421

48.1536

46.2989

96.1484

2018

72.7869

20.9405

27.2131

26.1335

96.0328

2019

82.0967

9.3097

17.9033

17.2882

96.5643

2020

89.2630

7.1664

10.7370

10.4183

97.0321

2021

95.3692

6.1062

4.6308

4.4716

96.5616

2022

96.7995

1.4303

3.2005

3.1225

97.5627

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

1.4303

1.7702

1.7443

98.5356

2024 and later years

1.4303

0.3399

0.3363

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.5436 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

5.3336

5.3336

5.2769

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

Warranty

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

85.4101

85.4101

14.5899

14.4204

98.8387

2014

99.5388

14.1287

0.4612

0.4515

97.8913

Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2015 and later years

0.2306

0.2306

0.2281

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year.

Workers’ Compensation

Estimated Cumulative Losses Paid

Estimated Losses Paid Each Year

Unpaid Losses at Year End

Discounted Unpaid Losses at Year End

Discount Factors

Tax Year

(%)

(%)

(%)

(%)

(%)

2013

21.8973

21.8973

78.1027

70.5590

90.3413

2014

43.4962

21.5989

56.5038

50.2521

88.9359

2015

56.0061

12.5099

43.9939

38.6933

87.9515

2016

63.5544

7.5482

36.4456

31.8997

87.5269

2017

68.9880

5.4337

31.0120

27.0967

87.3751

2018

73.9567

4.9687

26.0433

22.6599

87.0089

2019

76.0580

2.1013

23.9420

21.0255

87.8187

2020

77.6365

1.5785

22.3635

19.8843

88.9139

2021

80.1194

2.4828

19.8806

17.8042

89.5556

2022

81.3456

1.2262

18.6544

16.9494

90.8600

Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses
incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown.

2023

1.2262

17.4281

16.0761

92.2420

2024

1.2262

16.2019

15.1839

93.7167

2025

1.2262

14.9757

14.2724

95.3043

2026

1.2262

13.7494

13.3413

97.0319

2027 and later years

1.2262

12.5232

12.3901

98.9372

Taxpayers that use the composite method of Notice 88–100 should use 93.4456 percent to discount unpaid losses incurred in
this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year.

SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is David Remus of the Office of Associate Chief Counsel (Financial Institutions
& Products). For further information regarding this revenue procedure contact Mr. Remus on (202) 622-3970 (not a toll-free
call).